penumbra fully funded, page-15

dott, so you reckon I'm just sugar coating? What good does that do anyone?

I have not spoken to Conti in about 2 weeks but here, I will try and explain the process to you and everyone else.

The secondary declines allow expansion of the mine. Remember how they can't start producing at total capacity until after about 8-9 months? That is because when they commence production in early 2012, not the entire mine is built. They just have the basics done, i.e. ventilation, haulage roads/shafts, primary declines.

Once that begins, they can start to develop down the coal seams, but this takes time, hence why they start as a small scale operation, and upscale as these secondary declines are built.

They are relocating the decline so that they can start work on these secondary declines alot earlier, which will allow for a quicker ramp up at Penumbra.

If you don't want to listen at me, then that's fine, but go and talk to any mine engineer and they will tell you a very similar answer.